Key CA Commercial Solar Incentives & Rebates

Self-Generation Incentive Program (SGIP)

The Self-Generation Incentive Program (SGIP) was designed to encourage customers of cetin utility companies in the state to install technologies that reduce their demand on the grid. Qualifying technologies include advanced energy storage systems, fuel cells, solar panels and other green technologies and sustainable systems. Qualifying for SGIP can save California businesses thousands every month through lower energy consumption and expenses through their self-generated energy contribution.

Property-Assessed Clean Energy (PACE)

PACE programs can be utilized by commercial properties and is one of the commercial solar incentives in California designed to help commercial properties become more energy-sufficient. PACE for commercial property owners allows them to finance solar energy and other energy efficiency projects with funding from the government to cover initial setup and startup expenses. The property owner pays back their improvement just as they would with any other loan for business improvements but with better term rates.

Net Energy Metering Aggregation 

Net Energy Metering Aggregation (NEM-A) was part of the commercial solar incentives in California that allowed businesses, farmers, and municipalities with two or more electrical meters to get better savings and pricing returns. In 2023, the California Public Utilities Commission (CPUC) announced the new NEM 3.0 which changed the saving rates and terms for those under the NEM-A program. In November 2023, it was announced that the official switch-over date was February 14, 2024.

The Golden State has plenty to offer businesses looking for a place to grow. For those who wish to be more green-minded and aware of their carbon footprints and energy consumption, Commercial solar incentives in California are worth looking into. California is the ideal place to install your solar panel system. Not only does the state make it easier to add solar systems to your business management plan, but the state also offers some of the best solar incentives for California business owners looking at going solar.

For commercial property owners and businesses interested in installing a solar system at their facility, the time to act and make the move is now! Many incentive programs are currently in place in California to help make the transition to solar power energy easier and more cost-effective for businesses. Commercial solar incentives in California make it easier to manage energy consumption and align business models to current sustainability and green initiatives.

Why California Business Owners Should Care

The energy crisis, global warming, pollution and emissions, and other environmental concerns are everyone’s concerns. But businesses especially need to be mindful of the impact they are having on the environment. According to studies conducted by the UN, worldwide, buildings are responsible for 37% of global carbon emissions and 34% of energy demand. 

One way states like California are working to overcome these issues is through a strong and deliberate push for green energy and more sustainable options. Embracing solar panel energy can have profound benefits for business owners thanks to commercial solar incentives in California.

Financial Fast Facts For Commercial Solar Panel 

• Enjoy nearly a 50% reduction of costs associated with upfront purchases and system/product purchases with commercial solar incentives in California.
• Receive a significant Return on Investment (ROI) in 3-4 years, sometimes sooner in certain industries and with certain solar setups.
• Enjoy an earning potential that allows for thousands or even millions to be invested back into the company with energy savings and lower bills.
• The impact of solar panels offers a significant reduction in carbon footprint for businesses of all sizes, but especially medium and larger businesses.

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Commercial Solar Benefits Beyond the Financial Impact 

• Minimize energy use and maintain sustainable initiatives.
• Increase overall operations and streamline productions over time.
• Gain control over operational goals and see real-time results.
• Earn tax benefits and rebates right off the bat of up to 50%.
• Create a business model that aligns with current customer ideals.

By merging savings programs, federal tax credits, and federal solar energy grants, California businesses can save a bundle. With certain incentives and rewards programs, businesses can sell excess solar energy back to the grid. This directly lowers their own energy bill and also helps lower overall demand on the energy grid. It will also go a long way in reducing carbon emissions and reducing pollution and waste across the board. 

On average, businesses will be able to see an immediate reduction in energy use and expenses and the solar system can pay for itself in a matter of years! Financial savings and stronger growth and improved stability are just some of the reasons more businesses are looking at capitalizing on the commercial solar incentives in California.

Take Advantage of Commercial Solar Incentives in California

As highlighted by Solar experts at Com-sol, “The Federal Inflation Reduction Act (IRA) offers significant savings. The Federal Government is now offering a 30% Investment Tax Credit for the installation of a commercial solar system. This is a 15% increase from the previous tax credit of 26% and a significant savings for large, commercial solar projects. The Investment Tax Credit will remain in place through 2032, but now is the best time to act.”

Solar Installation in California

To take advantage of the commercial solar incentives in California businesses some key steps need to be followed:

Before Purchase

• Research the historical energy usage for the company or division being converted
• Determine how much energy usage needs to be offset through the solar initiative 
• Run prediction modes to check calculations and optimize the ROI for going solar
• Assess space availability and double-check the practicality of solar installations 
• Conservatively calculate ROI to see how soon the conversion will pay for itself

Solar Preparations

• Finalize the decisions for solar panels, systems, batteries, and set-up to utilize 
• Work with experts to begin engineering solar installations and to prepare the site
• Pull permits and double-check California building codes and regulations 

Installation Considerations

• Consider the size of the project and solar system to ensure proper management
• Ensure that only licensed and bonded solar experts work on the installation 
• Clear all inspections, file needed paperwork, and check maintenance schedules 

Connection Setup

• Connect the solar panel system to the electrical utility grid and set up solar meter
• Reviewing the system to ensure full understanding of optimal operations
• Watch the energy bills go down and the ROI start kicking in right away